Nigeria's Budget Minister Atiku Bagudu has warned that the country's current budget is insufficient to achieve its goal of becoming a $1 trillion economy, highlighting the need for significant fiscal expansion and improved revenue mobilization. Speaking at the 2026 Capacity-Building Workshop of the Senate Press Corps in Abuja, Bagudu emphasized that Nigeria's national budget remains one of the smallest among the world's 10 most populous nations, raising concerns about its capacity to fund critical infrastructure and human capital development. His remarks come as the National Assembly prepares to review the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), which outline the government's economic blueprint for the next four years.
Bagudu argued that the starting point for budget discussions should not be the current revenue position but the resources required to meet the Federal Government's development objectives. He questioned how Nigeria could transition to a $1 trillion economy while ensuring equitable growth, stating, "How can we, as a step towards that wider dream, generate a $1 trillion economy in the next four years? And not just a $1 trillion economy, but a $1 trillion economy that includes everyone?" The minister's comments underscore the challenges of aligning fiscal policy with the ambitions of President Bola Tinubu's Renewed Hope Agenda and the long-term Agenda 2050.
Comparing Nigeria's fiscal capacity to other large economies, Bagudu noted that Brazil's 2025 budget is at least 25 times larger than Nigeria's. "Do I expect to achieve the same outcomes as Brazil? Is it that these needs do not exist in Nigeria? I believe they do," he said. This disparity, he argued, raises questions about whether Nigeria can attain similar developmental milestones with significantly fewer resources. The minister urged the media to foster a national dialogue on revenue mobilization and the appropriate scale of the national budget, asking, "Should we continue with a budget that gives our populace one of the smallest budgets among comparable countries? Or should we imagine how we can mobilise more resources?"
Bagudu defended the constitutional role of the National Assembly in the budget process, stating that legislative oversight should not be dismissed as improper. He acknowledged that some projects, such as those addressing basic amenities in underserved communities, may appear unnecessary to observers in Abuja but are critical to lawmakers representing those areas. "To that member of the House of Representatives or Senate who was elected from that community, it represents what their constituents consider a priority," he explained. The minister also cited the example of freezers provided to women in fishing communities, who lacked facilities to preserve their catch, to illustrate the practical rationale behind certain budget allocations.
Addressing allegations of unlawful insertions into the national budget, Bagudu emphasized the need to distinguish between legitimate legislative amendments and irregular provisions. He acknowledged that the complexity of the budget process, involving multiple institutions and individuals, could lead to errors. "We are dealing with processes, human beings and human errors. Therefore, vigilance is important," he said, urging the media and legislative oversight bodies to remain vigilant. However, he also cautioned that full transparency on certain government policies could compromise strategic objectives, particularly in security operations. "I may be fighting a war in the area of security, but how much of my security policy should I make public? Not because I am doing something wrong, but because there are legitimate strategic considerations," he added.
Bagudu challenged the assumption that capital expenditure is inherently more important than recurrent spending, using security personnel as an example. "If I am fighting a war and I don’t pay security personnel, what happens? So which one is more important?" he asked. He argued that the quality of government spending should be judged by its impact on citizens rather than its classification as capital or recurrent. "The conversation should be about what we are trying to achieve, what resources are required to achieve it, how we mobilise those resources, and how we maintain public confidence while ensuring accountability and transparency," he concluded.
Godswill Akpabio, President of the Senate, called for stronger collaboration between the National Assembly, the media, and civil society to enhance scrutiny of the national budget. Represented by Yemi Adaramodu, Chairman of the Senate Committee on Media and Public Affairs, Akpabio urged journalists to deepen their understanding of parliamentary procedures to improve the accuracy of budget reporting. Adaramodu emphasized the media's role as an accountability mechanism, urging journalists to investigate public expenditure and expose waste. "Reports on budgetary provisions should reflect the circumstances surrounding the projects and programmes involved," he said.
Taiye Odewale, Chairman of the Senate Press Corps, highlighted the need for closer scrutiny of budget documents following controversy over a N1.3 billion provision for a purported Presidential Foreign Intervention Promotion Council. Odewale noted that investigations by the Senate Press Corps revealed the provision was not part of the N9.853 trillion added by the National Assembly to the N58.47 trillion executive proposal, bringing the 2026 Appropriation Act to N68.32 trillion. He stressed the importance of collaboration between journalists and legislative oversight bodies in scrutinizing appropriation documents.
Ebu Emmanuel of the Civil Society Legislative and Advocacy Centre (CISLAC) called for rigorous examination of all budget provisions, citing findings from the Independent Corrupt Practices and Other Related Offences Commission (ICPC). The ICPC identified 4,508 inserted or padded projects valued at N434.5 billion and 66 duplicated projects worth N6.43 billion in the 2022 budget. Emmanuel urged lawmakers to interrogate proposed projects by examining their locations, beneficiaries, costs, and expected outcomes before approval.
Vahyala Kwaga of BudgIT emphasized the need to shift focus from budget allocations to the outcomes they aim to achieve. He highlighted the recurring issue of delayed submission of the MTEF and FSP, proposing that the budget be submitted to the National Assembly at least 90 days before the end of the financial year. Kwaga also noted that public discussion of the budget often prioritizes allocations over measurable results, calling for greater emphasis on accountability and impact assessment.
The workshop, hosted by the Senate Press Corps, also explored the use of emerging tools like artificial intelligence to analyze complex budget documents. Adaramodu, who served as chief host, stressed the importance of journalists leveraging these technologies to enhance their reporting on fiscal matters. The event aimed to equip media professionals with the skills to scrutinize budgetary provisions more effectively and contribute to informed public discourse.
As Nigeria navigates the challenges of fiscal reform and economic growth, the dialogue initiated by Bagudu and other stakeholders underscores the critical need for transparency, accountability, and strategic resource allocation. The minister's warnings about the limitations of the current budget highlight the urgency of reimagining fiscal policies to align with the nation's ambitious economic goals. With the National Assembly set to review key economic frameworks, the call for collaborative oversight and informed public engagement remains central to achieving sustainable development.